|
What are they?Financial instruments whose value depends on the value of another financial instrument. The underlying object can be an equity, interest rate, gold or currency
Why? Derivatives are a way of managing exposure to risk. Either by increasing or decreasing the risk. The expected returns are consequently higher or lower.
Who? Trading derivatives is a specialized area of the financial markets and is for experienced investors alone.
Testing Sofware designed to trade or manage derivatives is lucrative. This is due to the requirements of a good background in testing, and the knowledge of trading.
|